Table of Contents
Introduction
Iran is a country with a long history and a progressive economy. Being one of the biggest economies in the Middle East, it has a well-developed banking system which is necessary for the functioning of the financial system. The present article will focus on the top 10 banks of Iran and the features and roles of these banks in the economy.
1. Bank Melli Iran
The history of this bank can be traced back to 1927 and it is the biggest bank in the country. It provides banking services such as retail banking, corporate banking, and international banking. Due to the fact that Bank Melli has many branches in Iran, it serves millions of customers and is actively involved in the domestic and international trade.
For instance: In 2019, Bank Melli Iran made a significant contribution to the improvement of the infrastructure by financing such projects as highways and railways.
2. Bank Mellat
Another major player is Bank Mellat, which has many branches and many products. The bank has retail banking, corporate banking, investment banking, and other activities. It has led the way in the use of technology in Iran's banking industry by offering innovative digital banking solutions for a better customer experience.
Notably: During the sanctions, Bank Mellat was one of the banks that enabled the company to trade with other companies outside Iran and came up with ways of paying for the goods bought.
3. Bank Sepah
Established in 1925, Bank Sepah is one of the older banks of Iran. It provides various services such as retail and corporate banking in the domestic and international markets. The bank has been quite active in the financing of large infrastructure projects such as ports and power plants.
For example: In 2018, Bank Sepah offered more than $1 billion for a new port in Chabahar to enhance Iran’s access to Central Asia and the Indian Ocean.
4. Bank Pasargad
A private bank, Bank Pasargad is one of the biggest banks in Iran and is well known for its customer oriented services and new and unique banking products. It has retail banking, corporate banking, investment banking and wealth management. Pasargad has received its praises for its solid risk management and stability.
Example: The bank has been helpful in improving on the financial services, and has provided services to reach out to the unbanked population and providing mobile banking to the people in the rural areas.
5. Bank Tejarat
Iran’s biggest banks include Bank Tejarat, which was established to enhance the trade and industry of the country. It offers products like trade finance and project finance through a large network of branches within Iran and other countries.
Statistically speaking: In 2019, Bank Tejarat offered more than $2 billion in trade finance that enabled import and export of goods and services.
6. Bank Saderat Iran
This bank is popular for its vast network of international operations, which focuses on trade finance and foreign exchange. It has links with many other banks across the world to enable it to handle crucial foreign exchange transactions.
Case Study: When sanctions were in place, Bank Saderat came up with ways of exporting oil to make the money reached Iran.
7. Bank Refah Kargaran
This state-owned bank is for the employees of government organizations and offers products like savings accounts, loans, and insurance. It has a large number of branches and is easily accessible to its customers.
Example: Bank Refah is involved in financial counseling and offers information to its clients on how to manage their funds and save.
8. Bank Maskan
Majority of Bank Maskan's operations are based on housing finance and it is an important bank in the promotion of affordable homes in Iran. It offers a number of mortgage products and has unique funding options for home ownership.
Statistically, in 2019, Bank Maskan provided more than $5 billion in mortgage loans for more than 20,000 new homes.
9. Bank Keshavarzi
The other bank is Bank Keshavarzi also referred to as the Agricultural Bank of Iran that offers unique services to the agricultural sector such as agricultural loans and crop insurance.
Example: The bank encourages environmental conservation, and it supports initiatives that assist farmers to shift to new methods that are more efficient and environmentally friendly.
10. Bank of Industry and Mine
This particular bank provides financing to industries and mining activities. It offers such services as project financing and trade financing to support strategic sectors of the Iranian economy.
Statistics: In 2018, this bank provided more than $2 billion for various projects creating employment and contributing to the economic development.
Conclusion
The 10 biggest banks in Iran are necessary for the Iranian economy and the financial system. They provide product diversification, meet the needs of different customers and support various sectors of the economy. These banks are also playing an important role in various facets of development including facilitating international trade and finance, ensuring financial accessibility, and developing the physical infrastructure. While Iran has its share of economic issues and sanctions, these entities are more vital in maintaining the financial status of the country.
